NEW SUGGESTED APPROACH TO IR35 PUT TO HMRC

blog header image

Posted : 14 Mar 2016 at 16:28:52
Category: News

Share this article

A new approach to IR35 has been put forward to HM Revenue & Customs ahead of the chancellor’s Autumn Statement next month

Outlined by the Chartered Institute of Taxation, the approach rejects the ‘Supervision, Direction or Control’ test in favour of an annual reporting obligation on end-users

Based on each PSC contractor initially assessing whether or not IR35 applies, the end-user would then take that assessment and report to the Revenue whether or not it is in agreement

If the end-user was to “wilfully” mislead HMRC that IR35 did not apply, when in fact it did, then any debt owed by the PSC under IR35 would “fall back” to the end-user, the CIOT said

This approach would be better than ‘SDC’ because, under such an “inherently subjective test”, many PSCs who are “genuinely in business for themselves” would be wrongly caught

So SDC would be contrary to an aim of the IR35 discussion document – not to widen IR35’s scope

It wouldn’t simplify administration, nor would it cut non-compliance, CIOT added

It also believes that HMRC should accompany the new reporting obligation with a campaign to “give greater publicity to their successes in IR35 cases”, to increase awareness of the rules

The CIOT’s Colin Ben-Nathan said: “It is clearly wrong that some people get away without paying the correct amount of tax and NICs because they are playing fast and loose with IR35 either through ignorance of the rules or deliberate non-compliance

“We strongly recommend that the annual reporting option we propose is seriously explored by HMRC rather than imposing an obligation on businesses to account for tax and NICs at source on payments to PSCs, as put forward in the discussion document”

LATEST SIMILAR NEWS

TSB GEARS UP FOR SELF-EMPLOYED MORTGAGE REVAMP
Posted on: 06 Nov 2019 at 13:35:57
TSB is “looking at a number of initiatives” to help more self-employed and contract workers to get on the housing ladder, Mortgage Solutions can reveal.The high street bank currently asks self-employed borrowers to provide income details for the last three years, ruling out the newly self-employed e...
HOUSE BUILDING IN A ‘DITCH’ WITH OTHER CONSTRUCTION SEGMENTS, SAYS CIPS
Posted on: 06 Nov 2019 at 11:20:01
UK house building is among the construction segments to have fallen into a “ditch” in October, the Chartered Institute of Procurement and Supply (CIPS) has said.The body’s monthly market index highlighted house building as among the worst-performing segments, alongside civil engineering and commerci...
STAFFORDSHIRE PUB DECORATED WITH GIANT POPPIES BY PATRIOTIC PUNTERS FOR REMEMBRANCE DAY
Posted on: 31 Oct 2019 at 15:25:53
The 28-year-old, who took over the pub in Kingsley Holt, Staffs, last year, painted poppies on the outsideA patriotic landlady swapped pints for paint brushes to decorate the outside of her boozer with giant poppies ahead of Remembrance Day.Pub landlord Danni Molloy decided to give The Blacksmith Ar...
BUSINESS URGES DELAY TO TAX CHANGES AFFECTING TEMPORARY WORKERS
Posted on: 31 Oct 2019 at 14:39:30
‘A third of companies who regularly use contractors are completely unaware of the upcoming IR35 reforms from April 2020, new research shows.’The taxation institute is calling for a 1 year delay given November Budget is cancelled, no legislation yet and a few other things going on. It’s a compelling...
ACCORD EXTENDS MAXIMUM MORTGAGE TERM TO 40 YEARS AND UPS AGE LIMIT
Posted on: 30 Oct 2019 at 13:36:16
Accord Mortgages is now offering a maximum term of 40 years and extending the age limit for applicants to 80 years old.The changes are in response to growing demand for mortgages which accommodate the evolving demands and demographics of homeowners and house buyers, the lender said. Data from t...
APPLE AIR POD PROS ARE HERE!!!
Posted on: 29 Oct 2019 at 15:03:07
Active Noise Cancellation for immersive sound.Transparency mode for hearing what’s happening around you.A customisable fit for all-day comfort.Magic like you’ve never heard.ComfortArrival of the fittest.We refined the details of comfort, creating a new class of in-...